A new MC number is the hardest thing a dispatcher has to sell to brokers — and some dispatch companies use that to justify charging new authorities more, or locking them into long contracts before they’ve had a chance to see results. Here’s what to actually check before you sign.
Understand how the fee is calculated
Most dispatch services charge a percentage of gross revenue per load, typically somewhere in the 5–10% range, though some charge a flat weekly fee instead. The number alone doesn’t tell you much — ask exactly what it’s calculated on. A percentage taken off linehaul only is very different from one taken off the full rate including fuel surcharge. Get the full fee breakdown in writing before you commit, and treat a new MC number as no reason to pay more than an established carrier would.
Check the contract terms before the fee
This matters more than the percentage. As a new authority, you don’t have the experience yet to judge a dispatcher’s performance in week one — you need the ability to walk away if it’s not working. Look for month-to-month terms with no setup fee and no cancellation penalty. A contract that locks you in for 60 or 90 days, especially with an early-termination fee, tells you the company is optimizing for retention rather than results.
Watch for these red flags
- Guaranteed earnings or a specific dollar figure promised — nobody controls the freight market, and a dispatcher who claims otherwise is selling, not informing
- Setup fees, training fees, or any charge beyond the stated dispatch percentage
- Pressure to use one specific factoring company — often a referral arrangement paid for out of your rate
- Refusing to put the complete fee structure in writing
- Vague answers about how many trucks each dispatcher is already handling
Questions worth asking before you sign
- Who submits carrier packets to brokers — you or the dispatcher?
- How many carriers under 90 days old are you currently working with?
- What are the contract terms and the cancellation policy, exactly?
- Do you handle broker paperwork, or only load finding?
- What can you realistically not do for me in the first month?
A dispatcher who answers the last question honestly — instead of promising the moon — is usually the one worth working with. New authorities don’t need volume in month one. They need access: brokers who’ll actually work with a brand-new MC number, and someone checking that those brokers are who they say they are before a load gets booked.
Related reading: How Much Do Truck Dispatchers Charge? A Straight Answer and Dispatcher vs. Broker: What’s Actually the Difference.